Edward and Elena Pucossi reside in Louisville, Kentucky, and purchased a lot on Nolin Lake in Edmonson County, Kentucky. They contracted with a builder to construct a lake house for them for a total contract price of $20,400. When the Pucossis had paid
a total of $16,050 to the builder, the builder abandoned the project and could not be located. The lake house was never completed and was never occupied. Bee Spring Lumber had furnished $8,292.68 in lumber and materials for the Pucossi project to the builder. Bee Spring Lumber had a lien against the property and brought suit to collect on that lien. The Pucossis claimed that they could not be held liable for more than the contract price because this was residential construction. The trial court held that the statutory exemption did not apply to vacation homes, only owner-occupied homes, and held the Pucossis liable for the full amount ($8,292.68 ) owed Bee Spring Lumber. Is the trial court correct?
The court held that the Pucossis could be held liable for the additional amount due. The exemptions for homeowners are limited to their residences - there is a balancing of the contractors' and lien holders' interests with the need to protect homeowners. The protection does not extend to vacation homes. Bee Spring Lumber Co. v. Pucossi, 943 S.W.2d 622 (Ky. 1997).
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